Question

Question 3 Transactions for Crane Ltd. for the month of June, its first month of operations, are presented below: June 1 Issued common shares to shareholders in exchange for $2,550 cash 4 Purchased supplies on account for $256 7 Billed J. Kronsnoble $278 for welding work done. 18 Received partial payment of $192 from J. Kronsnoble for work billed on June 7. 25 Hired a new employee to start work on July 3. 27 Received cash of $202 from Liu Controls Ltd. as a deposit for welding work to be done in July. 28 Paid for supplies purchased on June 4 29 Paid $91 for monthly income tax instalment

Options; Accounts Payable, Equipment, Common Shares, Cash, Rent Expense, Supplies, No Transaction, Income Tax Expense, Unearned Revenue, Accounts Receivable, Service Revenue.

Answer 1

Requirement completed

	Account debited		Account credited
Jun-01	Cash	Increase	Common Shares	Increase
Jun-04	Supplies	Increase	Accounts payable	Increase
Jun-07	Accounts receivables	Increase	Service revenue	Increase
Jun-18	Cash	Increase	Accounts receivables	Decrease
Jun-25	NO transaction		NO transaction
Jun-27	Cash	Increase	Unearned Revenue	Increase
Jun-28	Accounts payable	Decrease	Cash	Decrease
Jun-29	Income tax expense	Increase	Cash	decrease

	Cash	Supplies	Accounts receivables	Accounts payable	Unearned Revenue	Common Shares	Service revenue	Income tax expense
Jun-01	$2,550					$2,550
Jun-04		$256		$256
Jun-07			$278				$278
Jun-18	$192		($192)
Jun-25
Jun-27	$202				$202
Jun-28	($256)			($256)
Jun-29	($91)							$91